Loss of 100 million yuan in half a year! Starbucks in Malaysia is in financial trouble due to boycott!

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Recently, Starbucks operator success Foods in Malaysia announced that the boycott triggered by the Israeli-Palestinian conflict had a great impact on the local Starbucks, resulting in huge losses in the first half of this year.

It is reported that since the Israeli-Palestinian conflict, some US chain brands, including Starbucks, have been boycotted by local consumers and many Muslim people because of US support for Israel's military action against Hamas.

Starbucks' predecessor, CEO Nathhan, has said publicly that Starbucks' sales in the Middle East have been difficult because of the Israeli-Palestinian conflict, and even US cafes have been boycotted by some customers, and US store traffic has been declining since mid-November.

The same is true of Malaysia, where Muslims gather. After the Israeli-Palestinian conflict, Starbucks was boycotted by local consumers, especially Muslims, and door traffic fell by 40%, and the share price of successful food, a franchisee in Malaysia, was also affected, Xingzhou.com reported last year. Down more than 20%.

In order to mitigate the negative impact of the boycott, Starbucks in Malaysia has issued a statement clarifying that it has never supported Israel, let alone any political agenda, but this does not slow down local consumers' boycott of brands. Many people are still reluctant to step into Starbucks stores to buy coffee and support local brands instead.

(screenshot of Starbucks announcement in Malaysia)

Success Foods said local consumer boycotts of American brands had seriously affected Starbucks revenue in Malaysia. Starbucks suffered a huge loss of 87.34 million ringgit (about 143 million yuan) in the first half of this year, according to the company's new quarterly results.

The bad news forced success Foods to issue a statement explaining that Malaysia Starbucks is entirely owned by a listed Malaysian company with more than 5000 employees in 400 stores in Malaysia. These people who work for Starbucks are all Malaysian locals, including people with disabilities.

The founder of the success Group also stressed that Malaysia Starbucks is just a franchise company, and they employ not only locals, but also 85% of the employees are Muslims. He said that if local consumers are still biased against Starbucks and boycotted blindly, it will not benefit anyone in the long run.

Some analysts pointed out that spontaneous boycotts by local consumers have led to large sales of Starbucks stores and a serious impact on revenue, which may force operators to take measures such as firing some employees to maintain normal operation of the stores. Some employees also said in an interview with the media that the public boycott of Starbucks also had a certain impact on their lives and work, making them feel stressed.

The founder of the success Group said that local people should realize that Starbucks has been an out-and-out chain since it was introduced to Malaysia, and that there is no foreign investment like the United States, nor is it owned by Starbucks, an American coffee shop chain. He also believes that over time, more and more people will find that the boycott they participate in is unnecessary and may only have a negative impact on society.

Picture from: Internet

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